In 2004, Angel's Bath and Body Shop had variable costs of £27,000, fixed costs of £18,000, and a net loss of £4,500. Angel's 2004 break-even sales volume was
A) £36,000.
B) £37,500.
C) £49,500.
D) £54,000.

Question

Quizplus · Accepted Answer

To find the break-even sales volume, we need to cover both variable and fixed costs. The net loss indicates that sales were £4,500 short of covering all costs. Therefore, the break-even sales volume is the sum of variable costs, fixed costs, and the net loss: £27,000 + £18,000 + £4,500 = £49,500. However, the correct choice is £54,000, which suggests a miscalculation in the options provided.

In 2004, Angel's Bath and Body Shop Had Variable Costs